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Bitcoin Regulation South Africa

Bitcoin Wont Be Regulated Out Of The Blue In South Africa

Bitcoin Wont Be Regulated Out Of The Blue In South Africa

Bitcoin wont be regulated out of the blue in South Africa The South African Reserve Bank will not implement regulations on Bitcoin without following a consultative process, Arif Ismail told MyBroadband. Earlier this year, the Reserve Bank issued a statement on it reviewing its position on cryptocurrencies . The review will inform a policy framework and regulatory regime. Our current position is if any actor participates in cryptocurrency, the risk is really theirs, said Ismail, who is the head of fintech at the SARB. This position was taken in 2014 hence the need to revisit it. Ismail said the review is about understanding the evolving cryptocurrency landscape. Beyond just purchasing Bitcoin, Ether, and the 1,500-odd other tokens, what are some of the use cases starting to emerge? One of them is the initial coin offering (ICO). People are also talking about using cryptocurrencies in retail settings, said Ismail. The SARB review will assess what the underlying risks and benefits are, as well as the need for a new policy and regulatory framework. The important bit is to try and analyse whether there is need for such regulation, said Ismail. Regulatory issues under review include clearing and settlement risks, exchange control impacts, monetary policy, and financial stability. Matters such as information security, taxes, consumer and investor protection, and money laundering will also be considered. Ismal emphasised that the latter will be done collaboratively. What would be good is a holistic review of this space, he said. Were not responsible for tax Treasury and SARS is. They are part of the workgroup, part of the journey. Ismail explained that the outcome of the review might be that the Reserve Banks stance need not change at all. It may or may not contain a shift in Continue reading >>

The Tax Implications Of Bitcoin In South Africa

The Tax Implications Of Bitcoin In South Africa

The tax implications of Bitcoin in South Africa JavaScript is disabled for your browser. Some features of this site may not work without it. The tax implications of Bitcoin in South Africa Bitcoin is a virtual crypto-currency that exists solely in electronic form.1 Bitcoin was first launched in 2009 by Satoshi Nakamoto, which is an alias for a programmer or group of programmers.2 Bitcoin is defined as ?a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not redeemable for gold or other commodity?.3Virtual currency is a type of fund used and accepted in a virtual or online community.4Generally Bitcoin has been and is visible in South Africa (?SA?). It is more apparent in Cape Town.5 The first commercial conference on Bitcoin was held in Cape Town on April 20156 and BitHub, a virtual currency hub and incubator, was launched by the Cape Innovation and Technology Initiative in June 2015.7 On 7 September 2015, BitHub had a series of education Bitcoin courses which provided students with basic understanding of Bitcoin.8The use of Bitcoins as a medium of exchange is not yet widespread in SA, however, it has been noted that this industry is growing at a fast rate as several online retailers are now accepting Bitcoins as a means of payment for goods and services, for example Takealot.com.9 SA has already installed its first Bitcoin vending machine, situated in Kyalami, north of Johannesburg, to give users the ability to get Bitcoins in exchange for rand.10South African authorities have been silent on how bitcoin transactions should be taxed and even regulated. Research on this matter is relatively limited in South Africa. Studies are thus needed and are relevant to address the South African taxation implications of bit Continue reading >>

Bitcoin South Africa

Bitcoin South Africa

No account verification, identity checks or proof of residence Welcome to the Bitcoin ZAR website, a place for people living in South Africa who are interested in Bitcoin. Before you start, please Join our bitcoin community for South Africa on Facebook and twitter , to keep up to date with our daily bitcoin news and information. We are glad you have decided to become part of the Bitcoin revolution in South Africa and around the world. Start accepting and making payments in Bitcoin almost immediately, and introduce customers, friends and family to Bitcoin so that you have a network of people you can transact with locally and internationally. Does your business accept bitcoin as a payment method for products or services? bitcoin allows for the first time ever, any human being anywhere on the planet, to be able to send and receive any amount of money, with anyone else on the planet, without having to ask for permission from any bank, corporation, or government. This can be done almost instantly, for virtually no cost, regardless of the amount of money. Bitcoin is an online payment system invented by anonymous user Satoshi Nakamoto, who published his invention in 2008, and released as open-source software in 2009. The bitcoin system is peer-to-peer, and users can transact directly with each other all over the world almost instantly, without needing an intermediary such as a bank, Western Union, Moneygram, Paypal or any other company. The bitcoin system works without a central repository or single administrator, so is the worlds first decentralized digital currency, and it is the largest of its kind in terms of total market value. There is no company or entity controlling bitcoin. Bitcoin as a form of payment for products and services has grown, and merchants have an incent Continue reading >>

Legality Of Bitcoin By Country Or Territory

Legality Of Bitcoin By Country Or Territory

Legality of bitcoin by country or territory For a broader coverage related to this topic, see Bitcoin . The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. [1] Whilst the majority of countries do not make the usage of bitcoin itself illegal (with the exceptions of: Bangladesh, Bolivia, Ecuador & Kyrgyzstan), its status as money (or a commodity) varies, with differing regulatory implications. While some countries have explicitly allowed its use and trade, others have banned or restricted it. Likewise, various government agencies, departments, and courts have classified bitcoins differently. While this article provides the legal status of bitcoin, regulations and bans that apply to this cryptocurrency likely extend to similar systems as well. The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin. VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services. [2] :European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the bitcoin virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to currency, bank notes and coins used as legal tender", making bitcoin a currency as opposed to being a commodity. [3] [4] According to judges, the tax shouldnt be charged because bitcoins should be treated as a means of payment. [5] According to the European Central Bank , traditional financial sector regulation is not applicable to bitcoin because it does not involve t Continue reading >>

South African Reserve Bank (sarb) To Trial Its First Cryptocurrency Regulations On Bankymoon Steemcreated With Sketch.

South African Reserve Bank (sarb) To Trial Its First Cryptocurrency Regulations On Bankymoon Steemcreated With Sketch.

South African Reserve Bank (SARB) to trial its first Cryptocurrency Regulations on Bankymoon in cryptocurrency 2 years ago (edited) South Africa, a nation with approximately 56 million people is taking a leap into the world of cryptocurrency as news has come from the South African Reserve Bank to trial a number of regulations to virtual cryptocurrencies. This is a massive shift to secure a regulatory framework for Bitcoin and cryptocurrencies alike. It's about time that South Africa is picking up! It's known that, despite being an advanced economy, it's still been amongst the slowest ones to actually develop laws and regulation towards virtual currencies and Blockchain technology sooner. It turns out, Lorien Gamaroff, CEO of Bankymoon , a software and consulting firm that provides blockchain powered solutions and services was selected as the first business to trial the new regulations. That's right. His company will be subject to SARB's regulations. Mr. Gamaroff had been conducting seminars with the SARB on potential use cases for cryptocurrency in the South African economy as well as having discussions on its regulatory standpoint. Gamaroff is also involved in government research into alternative currencies within South Africa. Such an initiative shows much potential for the growth and acceptance of cryptocurrencies. About time! All we are doing at this point is seeing how far this relationship will go on within this sandbox, Gamaroff stated. This is because the Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be Bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies, he said. Gamaroff had mentioned that regulatory action is necessary and ultimately posi Continue reading >>

South African Central Bank To Start Bitcoin Regulation Experiment

South African Central Bank To Start Bitcoin Regulation Experiment

South African Central Bank To Start Bitcoin Regulation Experiment A Blockchain-based solutions provider in South Africa, Bankymoon, has been selected by the central bank of the country to be the sandbox business in testing out digital currency regulations A Blockchain-based solutions provider in South Africa, Bankymoon , has been selected by the central bank of the country to be the sandbox business in testing out digital currency regulations. The South African Reserve Bank, essentially, the central bank of the country, will begin experimenting with different regulations surrounding Bitcoin and other cryptocurrencies with an eye to legitimize and understand the growing trend. The South African government has up until now mostly turned a blind eye to Bitcoin and related digital currencies, but this marks a big step towards regulating Bitcoin in a country where it is flourishing with users and merchants alike. Lorien Gamaroff, the CEO of Bankymoon, admits that it is still the early days in their dealings with the central bank because of its hesitancy to jump in too deep, too quickly. All we are doing at this point is seeing how far this relationship will go on within this sandbox, he says. This is because the Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be Bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies. With the mainstream starting to pick up on Bitcoin and digital currencies, there is a thorny issue that always arises. The very nature of Bitcoin is to be decentralized, but the want of governments to restrict and regulate it is in opposition of this principle. However, regulating digital currencies does have its advantages , and for the governme Continue reading >>

Reserve Bank Looking To Regulate Bitcoin In South Africa

Reserve Bank Looking To Regulate Bitcoin In South Africa

Reserve Bank looking to regulate Bitcoin in South Africa The South African Reserve Bank (SARB) is reviewing its position on private cryptocurrencies to inform an appropriate policy framework and regulatory regime. This review forms part of its financial technology programme to assess the emergence of financial technology (fintech) in a structured and organised manner, and to consider its regulatory implications. The main goal of the programme is to track and analyse fintech developments and to assist policymakers in formulating frameworks in response to these emerging innovations, the SARB said. This SARB cryptocurrency review will address regulatory issues such as clearing and settlement risks, exchange control impacts, monetary policy, and financial stability. It will also consider other matters such as cybersecurity, it said in a press statement. Through collaboration with the other regulatory bodies, matters such as tax implications, consumer and investor protection, and money laundering activities will also be addressed, the SARB said. The SARB expects to complete the review in the second half of 2018. Apart from reviewing cryptocurrencies, the SARB will also investigate and decide on the applicability of innovation facilitators innovation hubs, regulatory sandboxes, and accelerators for the SARB. The SARB hopes to have concluded its assessment of the appropriateness of innovation facilitators by the third quarter of 2018. Project Khokha adistributed ledger technology proof of concept The SARB is further set to launch Project Khokha which will experiment with distributed ledger technologies (DLTs). The aim of this project is to gain a practical understanding of DLTs through the development of a proof of concept (POC) in collaboration with the banking industry. The Continue reading >>

Cryptocurrency Regulation In 2018: Where The World Stands Right Now

Cryptocurrency Regulation In 2018: Where The World Stands Right Now

Cryptocurrency Regulation in 2018: Where the World Stands Right Now If 2017 was the year of the ICO, it seems as if 2018 is destined to become the year of regulatory reckoning. Things have already begun to heat up as countries around the world grapple with cryptocurrencies and try to determine how they are going to treat them. Some are welcoming, others are cautious. And some countries are downright antagonistic. Here is a brief overview of how 15 countries/unions from various regions are treating cryptocurrency regulations. The United States, at the time of this writing, has no coherent direction on its cryptocurrency regulation other than that there will be some soon . The Securities and Exchange Commission (SEC) has warned investors of cryptocurrency investing risks, halted several ICOs and hinted at the need for greater cryptocurrency regulation. The Commodity Futures Trading Commission (CFTC) became the first U.S. regulator to allow for cryptocurrency derivatives to trade publicly, then organized meetings to talk about possibly changing the rules for cryptocurrency derivatives clearing (one of the meetings was postponed due to the federal government shutdown). Secretary of the Treasury Steve Mnuchin has indicated a preference for minted fiat currency over cryptocurrency. Speaking on January 12, 2018, at the Economic Club in Washington, D.C., Secretary Mnuchin warned those in attendance that he and other regulators were looking into the possibility that cryptocurrency could be used in money-laundering activities. The secretary then announced to the group that the Financial Stability Oversight Council (FSOC) had formed a working group to explore the cryptocurrency marketplace and that he hoped to work with the G20 to prevent bitcoin from becoming a digital equivalen Continue reading >>

How Bitcoin Could Be Regulated In South Africa

How Bitcoin Could Be Regulated In South Africa

How Bitcoin could be regulated in South Africa With the South African Reserve Bank looking at acryptocurrency regulatory experiment, it is no longer a question of whether Bitcoin should be regulated or not, but rather who will be doing the regulating. At present, decentralisation is paramount in the Bitcoin ecosystem the core principle that no one institution or authority is responsible for the operation, function or governance of the ecosystem is its greatest strength. In South Africa, it is this core principle that the notions of financial service democratisation and financial inclusion are premised. This is according to Seshree Govender, associate at Webber Wentzel who cites the recentBitcoin Scaling Agreement (which set in motion the Bitcoin fork of 1 August 2017), as an example of regulation in a decentralised system. The stalemate Bitcoin scaling debate, and the plethora of Bitcoin improvement proposals, culminated in a New York meeting of various players within the Bitcoin economy in May 2017, and with that, the Bitcoin Scaling Agreement came into being, said Govender. Simply put, this was an agreement that the Bitcoin community would move to a separate, parallel currency to increase efficiency such as transaction times and fees. As of May 2017, the signatories of the Bitcoin Scaling Agreement represented: $5.1 billion monthly on chain transaction volume; and The signatories of the Bitcoin Scaling Agreement represent the critical mass of both the technical and economic communities within the global bitcoin ecosystem. According to Govender, the scaling agreement has two very important lessons for the currency in South Africa (i) how the decentralised network makes decisions and (ii) the where the decision-making power lies. The key point to note about the Bitcoin Continue reading >>

The Legal Regulation Of Bitcoin

The Legal Regulation Of Bitcoin

A Bitcoin is a cryptic bundle of data that can be used to make digital payments and it forms part of the wider specter of virtual currencies. A Bitcoin is a decentralised, virtual cryptocurrency that lingers predominantly beyond the ambit of the banks and the government. Willing participants can use Bitcoins to buy and sell goods and services without the involvement of commercial banks. Virtual currencies are a digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account and/or a store of value. Virtual currencies constitute a leap away from the traditional banking and payment systems. Virtual currencies can either be centralised or decentralised, and convertible or non-convertible. Convertible virtual currencies have an equivalent value in real currency and can be exchanged back-and-forth for a real currency. Due to the fact that Bitcoin is decentralised and operates without the authority or administration of the state or the banks, some users have questioned its trustworthiness. This leads to various issues including concerns about taxation, circumvention of exchange control regulations, loss of fees for banks, and even a diminishing demand for local currencies. It is however the ease of use and low transaction costs that provide an attractive alternative to traditional banking. The South African Reserve Bank issued a position paper on virtual currencies whereby it declared that virtual currency had no legal status or regulatory framework and is therefore unregulated in South Africa. The Reserve Bank has furthermore warned that as Bitcoin has no legal status or a regulatory framework, it thus poses a number of risks for those that would choose to transact with it. The Reserve Bank further advised that it does n Continue reading >>

Taxman Is Eyeing Your Bitcoins

Taxman Is Eyeing Your Bitcoins

Last weeks budget revealed that financial authorities, including the South African Reserve Bank and the South African Revenue Service (Sars), have set their sights on cryptocurrencies. Tax and other agencies around the world are moving to better regulate and monitor them. Recently, tax authorities in the United States issued a summons on cryptocurrency exchange Coinbase.The US Inland Revenue Services obtained a court order forcing Coinbase to provide it with details of 13 000 accounts. The company is a cryptocurrency exchange and wallet service provider, where people can trade and buy cryptocurrencies such as bitcoin, ethereum and litecoin. Coinbase was ordered to hand over account details that included taxpayer identity documents, names, birth dates, addresses and historical transaction records for some higher-transacting customers during the period between 2013 and 2015, according to a statement by the company made last week. It strongly encouraged its clients who might have questions about their tax liability in this period to consult a tax adviser. In South Africa, regulators are increasingly alive to the implications of cryptocurrencies for the financial and tax systems. The emergence of cryptocurrencies is a major development to which South Africas regulatory regime must respond, then finance minister Malusi Gigaba said in his budget speech last week. The treasury revealed in the Budget Review that, as part of planned tax law amendments, the government is considering how to treat cryptocurrency transactions. At present, cryptocurrencies are subject to the provisions of tax law. But according to the Budget Review, they are viewed as a risk to the income tax system because they are extremely volatile and their sustainability is uncertain. The supply of cryptocurren Continue reading >>

Sars To Provide Tax Rules On Bitcoin And Other Cryptocurrencies In Next Few Months: Report

Sars To Provide Tax Rules On Bitcoin And Other Cryptocurrencies In Next Few Months: Report

SARS to provide tax rules on Bitcoin and other cryptocurrencies in next few months: report The South African Revenue Service (SARS) has said that it plans to provide clarity on the tax implications of transacting in cryptocurrencies likeBitcoinin either an interpretation or practice note early this year. In an interview with ITweb ,SARS spokesperson Sandile Mamela said the revenue service, like most other revenue authorities in the world, is looking at the implications of virtual currency on its tax base. We are currently having exploratory discussions with other jurisdictions and will continue to explore options in the coming year, said Memela. He pointed out that, currently, SARS is treating crypto-currencies under Capital Gains Tax (CGT), but it is an area the revenue body needs to explore further. In July, it was reported that the South African Reserve Bank (Sarb) would start testing a number of regulations related to Bitcoin and other cryptocurrencies before the end of 2017. This was followed by a December report in whichSARS said it was in discussions with a number of technology companies to enable it to track cryptocurrency trades more efficiently. As you can imagine it is very difficult the blockchain technology. Without revealing too much we are talking to some of the top technology companies in the world that are doing similar work for Canada and the UK and we are hoping to get that technology, saidDr Randall Carolissen, SARS group executive for research in December. Carolissen said SARS is working through the Organisation for Economic Cooperation and Developments (OECD) recommendations, which include quite detailed information on how cryptocurrencies should be treated. He said that SARS hadnt received any major cryptocurrency declaration until this point. Continue reading >>

Bitcoin Tax To Come To South Africa In Early 2018

Bitcoin Tax To Come To South Africa In Early 2018

Bitcoin Tax to Come to South Africa in Early 2018 As bitcoin continues to gain momentum in South Africa, taxpayers will need to prepare themselves for an increased probe into their cryptocurrency gains declarations. This is after the South African Revenue Service (SARS) confirmed that it will explain its position on the tax treatment for virtual currencies in early 2018 but SARS stand on digital currencies will not be published before the February Budget Speech. Despite a price decrease in mid-December, bitcoin was still trading at more than 750 percent higher on than it was only one year ago. 2017 was essentially the year that bitcoin became mainstream as an investment, which has led to this incredible increase in value. However, as tax authorities have started to eye this development, taxpayers involved with cryptocurrencies could face a higher tax bill in 2018 if they have taken profits on their crypto asset investments in the past year. SARS Interest in Tracking Digital Currencies In mid-2017, the South African Reserve Bank (SARB) stated that they would test a regulatory framework for bitcoin and other virtual currencies . In December 2017, SARS would also show interest in working with SARB and top technology firms to research ways of tracking cryptocurrencies to have all investment profits from cryptocurrencies taxed in an effective manner. To audit the money gained from cryptocurrencies in recent years, SARS will need close to two years to perform a detailed investigation. Any taxpayers that intentionally omits to declare their gains or profits will end up paying penalties of up to 200 percent and interest, said the Managing Director for Tax and Exchange Control at the Geneva Management Group, Ruaan van Eeden. The fact that SARS hopes to provide guidance on the t Continue reading >>

The State Of Bitcoin Regulation In Africa

The State Of Bitcoin Regulation In Africa

The State of Bitcoin Regulation in Africa The legal status of bitcoin varies from one country to another and is mostly undefined or under review in most parts of the world. While some African central banks have explicitly banned or restricted its use, others have allowed it or have simply not issued any statement or regulations covering digital currencies. In this guide, you will find a list of financial regulators in Africa that have made statements or issued regulations for the use of bitcoin and other decentralised cryptocurrencies within its borders. Kenyan Central Bank is not a Fan of Bitcoin In 2015, the Central Bank of Kenya (CBK) issued a public notice warning against the use of bitcoin citing the lack of regulations to govern its use. The CBK proceeded to send out a circular to local banks instructing them not to provide services to bitcoin startups. However, the CBKs stance seemed to have little impact on Kenyans appetite for bitcoin with the country being ranked third in Africa when it came to trading volumes atlocal exchanges such as Localbitcoins . Also, things seem to be looking up with a number of public and private entities now experimenting with blockchain technology . In addition, some financial regulators seem to differ with CBKs stance , such as the countrys financial market regulator, the Capital Markets Authority (CMA). The CMA announced plans in April 2017 to organise forums for fintech and cryptocurrency players to discuss the state of regulations and challenges it poses to their activities. It is also worth noting the Kenyan governmentand World Bank announced their intention to partner in using blockchain technology to sell governmentbonds earlier this year. South African Reserve Bank is Open to Digital Currencies The South African market regul Continue reading >>

Crypto Self-regulation Deemed Likely In South Africa

Crypto Self-regulation Deemed Likely In South Africa

Crypto Self-Regulation Deemed Likely in South Africa A self-regulatory approach has been mentioned as a likely solution for the South African crypto sector. A non-government body could adopt rules and implement industry standards. The central bank in Pretoria is expected to formulate the policy framework. Also read: Steps towards Self-Regulation in Croatia and Slovenia The South African Reserve Bank (SARB) has set up a team to monitor fintech developments and assist its efforts to finalize the regulatory regime for cryptocurrencies. Representatives of the private sector have proposed the creation of a Self-regulatory Organization (SRO). While banking falls within the central banks jurisdiction, cryptos are not suited to traditional centralized supervision, said a legal expert familiar with the matter. Regulation through self-regulatory organizations may be a more likely solution, Bridget King, Finance and Banking Practice Director at a leading South African law firm, told the Business Report. The SRO can be registered as a non-governmental body authorized to adopt rules, issue directives for its members and implement industry standards, she explained. Mrs. King believes that the central bank should deal with preventing systemic risk, while the SRO can establish a self-regulatory approach in the fintech sector. She warned that regulating cryptocurrencies prematurely could throttle growth and innovation in the industry: If laws are drafted based on existing technology, which is still in its growth phase, there is a risk that the technology may have moved so much by the time the legislation is enacted, that this legislation is obsolete or requires updating almost immediately. Bridget King noted, however, that this approach would have to be balanced against what she called Continue reading >>

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